Hong Kong-based AsiaSat and Thai satellite operator Thaicom have signed an agreement to provide services from a shared satellite.
The companies explained that an interim satellite will be placed at 120E no later than 12 January 2012 before being…
Hong Kong-based AsiaSat and Thai satellite operator Thaicom have signed an agreement to provide services from a shared satellite.
The companies explained that an interim satellite will be placed at 120E no later than 12 January 2012 before being replaced by AsiaSat 6/Thaicom 7 in early 2014.
AsiaSat said, in a filing with the Hong Kong Stock Exchange, that the company “shall be responsible for the design, construction and launch of the satellite, and Thaicom shall bear part of the cost incurred which shall be determined in accordance with the terms of the cooperation agreement, in return for the ownership and exclusive right to utilise a portion of the transponders of the satellite.”
In a notice to the Thailand Stock Exchange, Thaicom added that the total investment value of the agreement is approximately US$171m. “This amount includes the satellite, its launcher and insurance, ground system and project administrative cost.
“AsiaSat will pay the entire investment, and [Thaicom] will repay its share of such investment in instalments of twice a year to AsiaSat throughout the operating life of the satellite which is approximately 15 years.”
Built by Space Systems/Loral, the shared bird will have 28 high-power C-band transponders covering Asia and Australia.
This partnership between AsiaSat and Thaicom allows Thailand to maintain its rights on 120E, which are due to expire in October 2012.
Suphajee Suthumpun, Thaicom CEO, stated: “We are pleased to establish this new partnership with AsiaSat to cooperate on a satellite project that will preserve the orbital slot for Thailand at 120E, and fulfil the fast growing demand for quality satellite capacity from customers in our country and across the region.”
The past few months saw several initiatives being taken to help Thailand retain 120E but also 50.5E. Rights on the latter will reportedly expire in January 2012.
In early April, Thailand’s Ministry of Information and Communication Technology (MICT) asked state-owned CAT Telecom to conduct a feasibility test for the launch of a bird. The 120E position was previously held by Thaicom 1A but the satellite was decommissioned in the first half of 2010 after its lifespan expired.
By asking CAT to build a satellite, the government was reportedly looking to create competition in the Thai satellite industry.
Shortly after, in June, CAT put forward two proposals. The first one was to lease and buy a foreign satellite and to place it into the slot before replacing it with its own satellite.
The other proposal suggested was to buy a fully built satellite, although this would have proven difficult for CAT, particularly in finding one with the right specifications.
It remains unknown why the partnership between AsiaSat and Thaicom was finally chosen over CAT’s proposals.
As for the 50.5E position, the MICT was, a few months ago, allegedly looking to award a concession, under the Public-Private Joint Venture Act, to launch a new satellite there.
Thaicom was expected to be the first company to be asked whether it wanted to launch a satellite at this position. The satellite company used to operate Thaicom 3 in this slot but in 2006 the bird was de-orbited after experiencing power loss.
Thaicom 2 was then moved from 78.5E to 50.5E in mid-2010 in order to avoid losing rights on the position but the satellite was de-orbited in October after reaching the end of its life.
Overall, Thailand has six slots registered with the International Telecommunication Union (ITU), of which two are currently occupied by Thaicom’s birds – 78.5E and 119.5E.
For 78.5E, Thaicom received approval from the MICT in July to invest US$160m in Thaicom 6. Orbital Science Corporation will build Thaicom 6, while nascent launch provider SpaceX will launch it on a Falcon 9 rocket.
It will replace Thaicom 5 during the second quarter of 2013 and have 18 C-band and 8 Ku-band transponders.
As for 126E and 142E, currently unoccupied, the ministry is reported to have sent a request to the ITU to have its rights extended until 2013 and 2012 respectively.
